Further 10 drill holes intersect Fe grades up to 64%, with an average 23.75m @ 41.1% Fe, primarily drilled in the central and northern Zones 1 and 2 of the 3.7Km strike;

Findings in-line with indicative geological analysis of 15 November 2010;

Mineralisation consistent with test work material that produced a 68% Fe post-beneficiation product (22 December 2010);

Resource drilling continuing with two rigs;

Partial resource estimate targeted for September quarter 2011;

Continuing the Mt. Philp drilling program that commenced in March 2011, the Company has now completed the drilling of 29 holes for a total of 2310 metres, with 16 now assayed. Drilling and analysis is continuing.

Location data for the first 13 holes was released to the Market in June 2011 along with assay results for the first 6 holes. This news release provides location data for holes MP-014 to MP-029 and assay results for MP-008 though MP-017.

Drillholes MP-007 and MP-008 did not intersect the main ironstone body. Subsequent detailed mapping indicates that tight folding in the ironstone has locally flipped the dip of the ironstone to the east in this location and the holes drilled parallel to the body. A horizontal drillhole from the MP-007/008 pad will test this interpretation.

Drillholes MP-009 to MP-014 and MP-017 tested the central portion of the ironstone body where the ironstone was expected to be more siliceous. The average intersection width of these holes was 32 meters at average grades of 28% iron and 59% silica. These widths and grades are comparable with expectations based on the surface rock-chip sampling but they also included higher grade material (averaging 12 meters at 36% iron and 44% silica).

This material is expected to beneficiate similarly to the previous sample material using flotation to separate the silica from the haematite. The higher silica content material tends to show coarser grain size and is more friable. It may be possible to reject some of the silica using gravity separation methods. These will be investigated in the upcoming test work programme.

An RC rig was contracted and drilled RC drillholes MP-015 and MP-016 to test the northern extension of the ironstone away from the surface outcrop. Small widths of high grade massive haematite were intersected.

The RC rig was also used to infill the northern portion of the deposit. Significant widths of high grade massive haematite were intersected in holes MP-020, 021, 022 and 024; assays are awaited.

Infill drilling of Zone 1 is nearing completion.

Hole

Drill Type

Easting

Northing

RL

Azimuth (GDA54)

Dip

Total Depth

MP-014

DDH

389472

7679015

486

110

30

92.6

MP-015

RC

390332

7681014

388

24

51

88.0

MP-016

RC

390469

7681205

406

117

60

49.0

MP-017

DDH

389472

7679015

486

112

60

162.0

MP-018

DDH

390027

7679992

472

86

30

78.5

MP-019

DDH

390027

7679992

472

86

60

96.8

MP-020

RC

390234

7680709

426

109

60

73.0

MP-021

RC

390188

7680631

419

111

60

116.0

MP-022

RC

390231

7680781

404

99

60

82.0

MP-023

DDH

390148

7680424

420

118

30

56.6

MP-024

RC

390212

7680720

405

109

30

86.0

MP-025

DDH

390148

7680424

420

118

60

52.1

MP-026

DDH

390050

7680268

450

106

30

40.8

MP-027

DDH

390050

7680268

450

106

60

51.7

MP-028

DDH

390003

7680070

462

072

30

56.4

MP-029

DDH

390003

7680070

462

072

60

82.0

MP-030

DDH

389380

7678254

490

085

30

In progress

DDH Diamond drillhole
RC Reverse Circulation drillhole

TOTAL
GRAND TOTAL

1,263.5
2310.0

Table 1 Drillhole Location Data

Hole

From

To

Length (m)

Fe%

SiO2%

MP-008

8

10

2

64.03

6.92

and

26

28

2

56.75

17.58

MP-009

80

109

29

42.17

32.01

MP-010

27

65

38

27.36

56.92

including

37

50

13

38.66

39.50

MP-011

45

84

39

26.77

58.24

including

69

84

15

32.94

41.99

MP-012

41

61

20

42.64

36.57

including

46

55

9

53.89

22.49

MP-013

59

91

32

17.69

73.69

including

82

91

9

20.77

69.56

MP-014

51

91

40

24.4

59.5

including

67

81

14

34.8

49.6

MP-015

71

74

3

59.7

14.7

MP-016

33

35

2

45.1

30.9

MP-017

86

161

75

31.0

52.8

Including

127

140

13

53.3

23.0

and

150

153

3

55.5

19.2

MP-018

Submitted for assay

MP-019

Submitted for assay

MP-020

Submitted for assay

MP-021

Submitted for assay

MP-022

Submitted for assay

MP-023

Submitted for assay

MP-024

Submitted for assay

MP-025

Under Core Processing

MP-026

Under Core Processing

MP-027

Under Core Processing

MP-028

Under Core Processing

MP-029

Under Core Processing

MP-030

In Progress

Table 2 Summary Assay Data

A second core rig is now drilling which will accelerate the completion of drilling to allow a resource estimate. It will conduct the required horizontal drilling from pad MP-007 and MP-008.

The information in this news release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr John Skeet (as it relates to process related material), who is a Member of the Australasian Institute of Mining and Metallurgy and Mr Trevor Leahey, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Skeet is the Chief Operations Officer of Cerro Resources NL and Mr Trevor Leahey is a consultant to Cerro Resources NL. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and "qualified persons" as this term is defined in Canadian National Instrument 43-101 ("NI 43-101"). Mr Skeet and Mr Leahey consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

About Cerro Resources

Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on Mexico where it is developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico and has commenced exploration on the Namiquipa silver project in northern Mexico. It also maintains an active working focus on the Mt Isa, Queensland, region where it is exploring the Mt Philp haematite project and it holds an interest in the Kalman molybdenum, rhenium, and copper project.

Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.

Forward-Looking Information

This news release contains certain "forward-looking information" under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the completion of the potential to produce a saleable iron ore product, the plans to increase the iron recovery and the planned drilling program and plans to complete a resource estimate. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.